China's JD.com shuts operations in Indonesia, and Thailand amid a global slump

Chinese e-commerce giant JD.com is shutting shop in Indonesia and Thailand as it retreats from Southeast Asia after a bruising year for China's retail and technology sectors.

As per a company statement, JD.com will end its services in Thailand from March 3 and in Indonesia from the end of the same month, its local websites showed. Both units will stop taking orders on February 15. A spokesperson in a statement on Monday that the company will continue to serve global markets, including Southeast Asia, through its supply chain infrastructure.

However, the company hasn't cited any reason for the closure. In Indonesia, the e-commerce website was launched under the name JD.ID in 2015 and was a joint venture with Provident Capital.

According to Reuters, the company, which also runs the omnichannel retail brand Ochama in Europe, said in November that "new businesses" - including units abroad as well as other ventures such as JD property - accounted for just 2% of total revenue in the third quarter.

This comes at a time when commerce and technology, both sectors have hit a slump globally. As the global economy stares at a possibility of an incoming recession, companies across the world are working on reevaluating their business models and cutting jobs to save costs.

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